Disney Interactive Lays Off Over a Quarter of its Workforce
Written Thursday, March 06, 2014 By Richard WalkerView author's profile
Disney Interactive has laid off around 700 employees, cutting its global workforce by 26%, the New York Times reports.
The decision is down to the company's merging of mobile and social businesses, as well as a "dramatic" reduction in developing properties in-house, favouring third-party development and licensing. Disney is also planning to half the number of games it develops each year.
"These are large-scale changes as we focus not just on getting to profitability but sustained profitability and scalability," Disney Interactive President James A. Pitaro explained.
The significant staff cuts come despite a recent return to profitability for Disney Interactive, thanks in no small part to the release of Disney Infinity which has sold in the region of 3 million copies to date.